Four global cryptocurrency exchanges are leading a $32 million fundraising round in stable coin, Terra. Terra is a new e-commerce based stable coin. These investments have been made by these four exchanges as stable coins have become the most popular projects in the crypto industry.
This $32 million fundraising in Terra was led by OKEx, UPbit’s parent company Dunamu, Binance Labs and Huobi Capital. Terra, which has received major corporate backing, is headed by Daniel Shin, founder and president of TicketMonster.
The Terra investment is the first round of investment to have received backing by competing exchanges. It also entails investments by other investment groups such as FBG Capital, Hashed, Polychain Capital, 1kx, Kenetic Capital and Arrington XRP.
Stable Coins Continue To Gain Popularity Despite Concerns Around Tether
Considering the tremendous volatility in the cryptocurrency markets, a lot of cryptocurrency exchanges are turning to support stable coins to profit from price swings and most importantly to avoid the daily market volatility. Tether is one of the most popular amongst stable coins, even though it is shrouded in controversy.
One of the main concerns about Tether is the creation of coins. However, some crypto enthusiasts argue that this can be used to artificially manipulate the markets and print more coins when the market hits the low, even if Tether doesn’t have the matching funds in its reserve.
Towards the beginning of 2018 cryptocurrency investors were concerned that Tether would be found to have less cash compared to the Tether that they have. This would have created major issues for the markets. While these concerns around Tether have subsided now, a lot of competing stable coins have come up in the market ever since, as stated in the NewsBTC report.
Since stable coins are becoming the next big thing in the crypto space, a lot of cryptocurrency exchanges have started supporting them. However, owing to the volatility associated with stable coins, only the companies investing in the seed rounds will profit from them.
The post Four Global Cryptocurrency Exchanges Lead $32 Million Fundraising Round In Stable Coin, Terra appeared first on OWLT Market.
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